The Tokyo Tax Bureau found that in 2018-2020, the Luxembourg division of Epic Games did not declare income from microtransactions in Fortnite in Japan. The company was obliged to repay the tax arrears and pay a fine.
In total, the amount amounted to ¥3.5 billion or $23 million.
Epic Games, in a Bloomberg comment, confirmed that it had not reported earnings. According to the company, she did it unintentionally. "Realizing the omission, we paid the outstanding consumer tax in Japan," said Natalie Munoz, a representative of Epic.